Certified Staffing Profesional Practice Exam

Under the Affordable Care Act (ACA), what is the employee threshold for play-or-pay requirements?

1. 25 or more employees

2. 40 or more employees

3. 10 or more employees

4. 50 or more employees

The correct answer is: 50 or more employees

The Affordable Care Act (ACA) introduced specific requirements for employers regarding health insurance coverage, often referred to as "play-or-pay" requirements. These requirements mandate that applicable large employers (ALEs) provide health insurance coverage to their full-time employees or face potential penalties. The threshold for these play-or-pay requirements is set at 50 or more full-time employees. An employer is classified as an applicable large employer if it employs at least this number of full-time employees, which includes both employees who work 30 hours or more per week and full-time equivalents. This standard is crucial because it determines whether an employer must comply with the ACA regulations concerning health insurance coverage. Meeting this threshold means that the employer is obligated to provide affordable health insurance that meets minimum value standards to avoid penalties. Compliance is significant because it impacts not only the employer's legal obligations but also the access employees have to healthcare coverage. In contrast, the other thresholds listed—25, 40, and 10 employees—do not align with the ACA's definition and requirements. Those numbers do not trigger the play-or-pay mandate, as they fall below the established threshold that determines large employer status under the ACA.